"Lotus Taps WisdomTree Money Market Fund to Build Yield Floor into DeFi Lending," says a news brief on The Defiant. It tells us, "Pre-launch DeFi lending protocol Lotus has announced that WisdomTree's Treasury Money Market Digital Fund (WTGXX) will serve as part of the reserve framework backing LotusUSD, its core vault token, according a press release shared with The Defiant. The DeFi protocol said the move marks one of the first instances of a money market fund being referenced within a DeFi lending protocol." The article continues, "LotusUSD reserves are composed of USDC and tokenized short-duration U.S. Treasuries. According to the release, WTGXX integration is designed so that lenders earn a baseline yield even at zero utilization, sidestepping the structural problem in standard DeFi lending where returns dry up when borrowing demand is low." It says, "WTGXX currently tokenizes over $857 million in U.S. Treasuries, primarily on Ethereum with a secondary allocation on Arbitrum, and carries a 7-day APY of 3.49%, per data from RWAxyz. The integration is made possible in part by WisdomTree's recently granted Securities and Exchange Commission exemptive relief permitting 24/7 instant settlement of WTGXX shares -- a prerequisite for compatibility with around-the-clock DeFi infrastructure." Maredith Hannon, head of BD for digital assets at WisdomTree, comments, "We are seeing growing interest in connecting regulated financial assets, such as WTGXX, with blockchain-based infrastructure. This momentum reflects broader exploration of how tokenized traditional assets may be used within emerging digital ecosystems."

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